From Dallas Express · Dallas Express · · 1m 30s
A drone strike in Saudi Arabia could hit Texas gas prices
One pipeline moving 4% of the world's oil is down, and Yanbu has about a week of stored crude left.
In brief
One pipeline moving 4% of the world's oil is down, and Yanbu has about a week of stored crude left. Texas pumps track global crude, not Texas wells, so an attack half a world away lands in your tank within weeks. Originally reported by Dallas Express.
A pipeline went dark
A drone attack on Friday shut a Saudi pipeline that carries roughly 4% of the world's oil supply, about 4 million barrels a day routed around the Strait of Hormuz.
Five to seven days of cover
The Red Sea port of Yanbu has only five to seven days of stored oil to keep exports moving, three industry sources told Reuters. After that, shipments stop.
Repairs could take weeks
One source put repairs at five to six weeks; another said some flow could return sooner. Saudi officials had released no damage assessment or timetable.
Nobody has claimed it
Saudi Arabia and Iraq both said the drones flew from Iraqi territory, where Iran-backed militias operate. Trump said Saturday that Iran was probably behind it.
“I think they are, probably they are”
The strait is getting hotter
An attack killed one person on an Iranian cargo ship near Qeshm Island on Sunday, and a UK maritime monitor reported a projectile starting a fire on a vessel in the strait.
Texas oil won't save you
US refineries buy imported crude too, so global prices set local ones. Diesel already neared $6 a gallon at a Dallas truck stop on Labor Day, and it moves the food and goods everyone buys.
The big picture
Texas pumps track global crude, not Texas wells, so an attack half a world away lands in your tank within weeks.
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